Oman Crude Oil Futures released for trading

The Dubai Financial Market (DFM) launched trading in futures contracts for Oman crude oil, providing investors with a unique opportunity to invest in this key asset class.

The launch of the futures (Micro DME Oman Crude Oil) took place during a market launch ceremony in the presence of Hamed Ali, CEO of DFM and Nasdaq Dubai, and Raid Al-Salami, Managing Director of DME, as well as senior representatives of the new product launch partners such as market makers and bidders.

The new monthly futures contract from DFM tracks the performance of DME’s Oman crude futures, making it available to a large number of investors. It is traded in US dollars and settled in cash at the closing price.

This contract allows investors to participate in Middle East oil price movements and diversify their portfolios along with other DFM products.  The diversified portfolio of products improves risk management and leverage potential with a smaller principal investment, allowing investors to maximise the size of their portfolio.

Commenting, Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “The launch of Micro DME Oman Crude Oil Futures is a new millstone for DFM as it brings a whole new asset class to the market, allowing our investors, particularly retail investors, to participate in the opportunities in one of the region’s key economic sectors. We would like to express our sincere gratitude to DME for working with us in taking this important step, which provides a solid foundation for other joint initiatives, ultimately strengthening Dubai’s position as a capital markets hub, in line with the management’s vision and strategy to develop financial markets in Dubai.”

Raid Al-Salami, managing director of DME, said: “The DME micro contract provides retail investors with the opportunity to trade a Middle East crude futures contract for the first time in the region. DME will always seek to enrich the local financial market in order to strengthen the Emirate of Dubai’s position as one of the world’s major capital centres.”

Trading in the new contracts is supported by 3 market makers, including xCube, Al Ramz Capital and BHM Capital. Several DFM trading members will service the contracts, including International Securities, BHM Capital Financial Services, Al Ramz Capital, Mena Corp Financial Services, Al Dar Shares and Bonds, SICO Financial Brokerage, EFG Hermes (UAE) and Arqaam Securities.

The new contracts are also the first result of a cooperation agreement between DFM and DME aimed at developing new investment opportunities and providing retail investors with direct exposure to the largest and most relevant asset class in the region.

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